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HomeMy WebLinkAbout10-25-1989 Minutes . . . J October 20, 1989 To: Mayor and Common Council of the City of San Bernardino Re: Special Meeting NOTICE IS HEREBY GIVEN that the Mayor of the City of San Bernardino has called a Special Meeting of the Mayor and Common Council/Community Development Commission for 9: 00 a.m. , Wednesday, October 25, 1989, in the Redevelopment Agency Board Room, Fourth Floor, City Hall, 300 North "0" Street, San Bernardino, California. The purpose for which this meeting has been called is listed on the agenda. SHAUNA CLARK City Clerk City of San Bernardino, California October 25, 1989 The Special Meeting of the Mayor and Common Council/Community Development Commission of the City of San Bernardino was called to order by Mayor Holcomb at 9:10 a.m., Wednesday, October 25, 1989, in the Redevelopment Agency Board Room, Fourth Floor, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller, City Attorney Penman, City Clerk Clark, City Administrator Julian. PUBLIC COMMENTS - SUSAN SMITH HARTMANN Susan Hartmann expressed concern regarding the homeless situation. She stated that the Salvation Army has opened its doors for the homeless because of the rain. (1) 1 10/25/89 . . . f FINANCING FOR ORANGEWOOD ESTATES DEVELOPMENT In a memorandum dated October 24, 1989, Ken Henderson, Community Development Director, stated that the Council selected Dukes-Dukes and Associates to complete Phase II of the Orangewood Estates project. This project involves the buildout of the remaining seventy-six homes of a two-hundred lot subdivision on the west side of San Bernardino. (9) The memorandum stated that at the October 2, 1989, Council meeting, there was great discussion surrounding project financing and the offers submitted by each of the competing developers. In order to complete the project as quickly as possible at no further cost to the City, the Community Development Commission could consider lending Dukes-Dukes and Associates 1.6 million dollars from the Agency's twenty percent set-aside housing fund. These funds would be used to payoff the bonded indebtedness and reimburse the City's general fund. Dukes-Dukes and Associates would repay the Agency out of construction or take-out loan proceeds, whichever scenario was most advantageous to the City. Mayor Holcomb stated that the assessment bonds for the lots would be paid off with the money in the 20% set-aside. He stated that rather than keeping the assessments, he has proposed to pay the assessments immediately using the 20% set-aside. The 20% set-aside would be loaned to Dukes-Dukes to payoff the assessments. A discussion ensued regarding the City paying the bonds for Dukes-Dukes and Associates. Mayor Holcomb stated that Dukes-Dukes will be required to pay the same dollar amount as any of the other developers would have had to pay. Dukes-Dukes will repay the loan when the construction is funded or the houses are sold. Ken Henderson, Director of Community Development, answered questions regarding the amount of money available in the 20% set- aside fund. He also gave the background where the funds came from. Mayor Holcomb pointed out that in essence this is the same deal as the other competing offers from the other developers, the only difference is the money will be up fronted to Dukes-Dukes from the 20% set-aside housing fund, and Dukes-Dukes will pay the money back to the Agency. A discussion ensued regarding the money for the 20% set- aside housing fund. 2 10/25/89 . Ken Henderson explained that essentially the City would be repaid the $325,000 and the $80,000 in January if in fact the deal is completed. He stated that Dukes-Dukes would have to pay the total of the two amounts which is approximately $1.6 million. He stated that essentially this is the same offer with Dukes-Dukes except the mechanics are a little different. Ken Henderson, Director, Community Development, explained that the $1,600,000 given to Dukes-Dukes and Associates would be paid back to the Agency by Dukes-Dukes and Associates through a construction loan or from a take-out loan proceeds. Craig Graves answered questions regarding bond payments and the amount due. He stated that a bond payment on the existing Orangewood Estates is due in July, and another January. Mayor Holcomb stated that all the assessment bonds are being paid off at 11 percent, with money that will be earning the City around 5 to 6 percent which is a substantial savings. Council Member Miller made a motion, seconded by Council Member Estrada and unanimously carried, that the Community Development Commission appropriate approximately $1,600,000 in twenty percent (20%) set-aside funds and approve the use of these funds for Phase II of the Orangewood Estates project. . ALLOCATION OF REVENUES FROM BOND REFINANCING PROGRAMS AND PROPOSED EXPENDITURES FOR VARIOUS PROJECTS, RESERVES EQUIPMENT AND PERSONNEL In a memorandum dated October 20, 1989, Shauna Clark, City Clerk, listed priorities set forth by the Mayor and Council at the October 18, 1989 meeting for the expenditure of bond refinancing revenues. (See Page 12) (2) In a memorandum dated October 18, 1989, City Administrator Julian stated that the 1989-90 budget was adopted with certain reservations...revenues that were inadequate to fund many of the departmental requests. In the memorandum City Administrator Julian lists estimated amounts of available funds that can be used for budgetary purposes from the bond refinancing. These estimates were provided by bond counsel, and City Administrator Julian has attempted to present the figures in a fashion which relates to expenditure categories. It was pointed out that the additional dollars from the refinancing of bonds would be about 20-35 million dollars, but in the report it states there is a total of $11 million. Mayor Holcomb stated that the $11 million is money going to the general fund from the sale of residual interest and housing mortgage bonds, plus the money earned on refunding existing . 3 10/25/89 . . . bonds. He further stated that presently the Agency has approximately $20 million of unencumbered redevelopment funds available. In addition to that approximately $20-25 million are available from the bonding capacity for new tax increment bonds. City Administrator Julian presented his memorandum and explained that money in Category II is RDA bond money from the State College Project area and it can be used for street improvements, buying property and for any other use in the project area. In the memorandum there is a breakdown of funds available from the three categories. Craig Graves, City Treasurer, answered questions regarding refundings and he explained the amounts available for expenditure within the various categories. Mayor Holcomb stressed that new sources for ongoing revenue need to be established. REVENUE ENHANCEMENT PROPOSALS In a report dated October 17, 1989, James Richardson, Deputy City Administrator, Development Services, gave a summary and description of the revenue enhancement proposals submitted by various departments. (4) Deputy City Administrator Richardson gave an overview of the programs proposed and he outlined the amount of funds needed to implement these proposed programs. He stated that funds for the projects amounted to $5 million. He also stated that there is about $920,000 worth in equipment and supporting material which are identified as cost. Mr. Richardson summarized the larger dollar amounts. Public Works - Street Light Energy Charge City-Wide Assessment District The Public Works Department had proposed a city-wide assessment district to retrieve the current cost for street light energy. An annual fee of $25 to $30 per single family unit and prorated for commercial will be charged. Mr. Richardson answered questions regarding how the revenue would be assessed, stating that the proposed fee for a city-wide assessment district would be assessed through property taxes. Mayor Holcomb stated that there is complete flexibility, any way the Council decides it can be accomplished. The first thing is to instruct the department of Public Works to submit an estimate of how much it would cost to bring the entire City up to minimum acceptable standards for street lighting. 4 10/25/89 . . . Public Buildings - Central City Mall Mr. Richardson stated that currently there are expenses to the City associated with the Central City Mall. He stated that the contract is being looked at, in terms of the service levels that are provided. One of the expense areas being looked at is to enforce the services provided to the theatres located at the mall. Fire Department - Paramedic Service Charge Mr. Richardson stated that the paramedic service charge could be established similar to the city-wide assessment district. Subsequently, there has been discussion to establish this as a direct charge. He stated that a direct charge would be charged for service as rendered. The Council discussed contracting paramedic service. Mayor Holcomb stated that the City is always looking for ways to accomplish things better and for less cost. The City has investigated ongoing ways to contract services out. He stated the City has experienced in most major items, contracting has a short term savings and in the long run there is a decrease in service and increase in cost. One example is the refuse service. It would cost the City more to contract out for this service and the rates would have to be increased. Manuel Moreno Jr., Director of Public Services, stated that currently the City charges $9.50 for refuse pickup which includes street sweeping. It was pointed out that the service charge for the refuse is not a problem its the liability. Andrew Green, Director of Finance, answered questions regarding the estimated amount from the general fund used for liability. City Attorney Penman answered questions regarding the liability of the city for accidents that occur with refuse trucks. He also stated that if private refuse were used, the refuse company providing the service to the City would be required to obtain insurance for their company, which would eliminate the City from being responsible for liability. Mayor Holcomb pointed out that the paramedic charges would not be included in the property tax, it would come from a special tax of $15 per residential unit. A discussion ensued regarding alternate ways to resolve the proposed fee charges for the use of the paramedic service. It was pointed out that the Ways and Means Committee will be reviewing the use of general contracting service. 5 10/25/89 . . . r City Clerk's Office - Single Family Rental Units Mr. Richardson stated that it is proposed to charge a license fee of $60 for single family rental units on a two-year renewal basis. He further stated that there are approximately 7,000 units. This proposed license fee would generate approximately $420,000 in revenue. Mayor Holcomb stated that this proposal would force absentee landlords to maintain their property in better condition. City Clerk Clark explained the single family rental ordinance and the type of incentives that would be used to start the program. She also explained that presently, an owner with four or more single family units has to apply for a business license. This proposal would extend the business license requirement to single family homeowners who rent their houses. Ms. Clark stated that when obtaining a certificate of occupancy the owner would only be required to upgrade their units to the building code the year the building was built. They would not have to upgrade the units to the present building code standards. City Clerk's Office - Fast Food Rate Differential Mr. Richardson stated that it is proposed to increase the rate for a business license for all fast food operations. Mayor Holcomb pointed out that the fast food operations are a major cause of the litter in the City. This includes mini-mart stores that sell take-out food. A discussion ensued regarding the litter problems encountered with the fast-food chains and mini-mart stores. It was suggested that the catered lunch wagons be included in the proposed rate increase with the fast food operations. A discussion ensued regarding the litter left at the bus stops. Manuel Moreno Jr. answered questions regarding the number of trash cans placed throughout the City, stating that there are approximately 350 trash cans distributed in the City. A discussion ensued regarding the advertisement benches that are placed in areas where there is no bus route. City Clerk's Office - Admissions Tax Mr. Richardson explained the proposed admission tax and the effect an admissions tax might have on revenues the city receives from satellite wagering at the Orange Show. 6 10/25/89 ,:. . . . Building and Safety - Licensing of Mobile Home Parks Jim Richardson answered questions regarding licensing mobile home parks on gross receipts. City Clerk Clark stated that mobile home parks are currently licensed on gross receipts. Mr. Richardson stated he is aware of that; the annual inspections for mobile home parks are not adequately being performed. This gross receipt tax for mobile homes will help provide better annual inspection service for the mobile home parks. He stated that the state law prohibits the rate to be increased, so it is proposed to obtain funds through the gross receipts. Administrative Department - Development Services Vacant lot/building Registration Jim Richardson stated this is a proposal to establish an annual fee of $50 to register each vacant lot and building. He stated that one of the problems the City is encountering is the deterioration of buildings. This proposal would help keep track of the vacant lots and buildings and would also generate some revenue. RECESS MEETING - CLOSED SESSION At 10:45 a.m., Council Member Minor made a motion, seconded by Council Member Flores and unanimously carried, that the Mayor and Common Council/Community Development Commission recess into closed session pursuant to the following Government Code Sections: 54956.9 (b)( 1) pending litigation, litigation; to confer with the attorney regarding as there is significant exposure to 54956.9(c) - to confer with the attorney regarding pending litigation, so that Council/Commission may decide whether to initiate litigation; 54956.9(a) - to confer with the attorney regarding pending litigation which has been initiated formally to which the City is a party as follows: Citv of Manaaement. No. 238755; San Bernardino vs. California Construction Inc.. et al - San Bernardino Superior Court Case Saldecke. et al vs. Citv of San Bernardino. et al - San Bernardino Superior Court Case No. 236836; Cable Lake Bernardino 239649; Association vs. Ci tv of San Bernardino - San Superior Court Case No. 239714 and Case No. 7 10/25/89 . Citv of San Bernardino vs. San Bernardino Baseball Club. Inc. - San Bernardino Superior Court Case No. 239193~ Stubblefield Construction Comoanv. et al vs. Ci tv of San Bernardino. et al - San Bernardino Superior Court Case No. 232998~ Juan Manuel Sanchez vs. Ci tv of San Bernardino - United States District Court Case No. CV87-2291 AWT (Bx)~ Charles H. Brown vs. Citv of San Bernardino San Bernardino Superior Court Case No. 243087~ Sock Dawson. et al vs . United States District (RWRx) ~ City of San Court Case Bernardino. et No. SA 88-461 al- AHS Barron/Alcarez vs. City of San Bernardino - San Bernardino Superior Court Case No. 241692~ Barratt. Inc.. vs. Citv of San Bernardino - San Bernardino Superior Court Case No. 242433~ Revnolds vs. Citv of San Bernardino Superior Court Case No. 248752~ San Bernardino . Dudlev Brewster. et al vs. Southern Pacific Railroad. et al - San Bernardino Superior Court Case No. 249736~ Citv of San Bernardino vs. Patel - San Bernardino Superior Court Case No. 250473~ Save San Bernardino vs. City of San Bernardino San Bernardino Superior Court Case No. 250425~ Crain vs. City of San Bernardino - San Bernardino Superior Court Case No. 229990~ Draao/Perrv vs. City of San Bernardino Superior Court Case No. 244095~ San Bernardino Haves vs. Delanev (Citv) - San Bernardino Superior Court Case No. 240286~ Hudson vs. Citv of San Bernardino - San Bernardino Superior Court Case No. 244466~ Kaolan vs. Citv of San Bernardino - San Bernardino Superior Court Case No. 225490~ . Maadaleno vs. City of San Bernardino Superior Court Case 248739~ San Bernardino 8 10/25/89 . . . Payne vs. City of San Bernardino - San Bernardino Superior Court Case No. 240290; Ticich vs. Citv of San Bernardino - San Bernardino Superior Court Case No. 243924; Valenzuela vs. Citv' of San Bernardino Superior Court Case No. 242137; San Bernardino Taaaart vs. Citv of San Bernardino Superior Court Case No. 230330. San Bernardino e. Pursuant to Government Code Section 54956.8 to give instructions to the CitY's/Commission negotiator on the purchase/sale/exchange/lease of property in the City. CLOSED SESSION At 11:00 a.m., Mayor Holcomb called the closed session to order in the Redevelopment Agency Board Room, Fourth Floor, City Hall, 300 North "0" Street, San Bernardino, California. ROLL CALL Roll call was taken by City Clerk Clark with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller; City Attorney Penman, City Clerk Clark, City Administrator Julian. Also present were: Senior Assistant City Attorney Barlow, Planning Director Kilger. ADJOURN CLOSED SESSION At 12:35 a.m., the closed session was adjourned to the Special Meeting of the Mayor and Common Council/Commission of the City of San Bernardino. RECONVENE MEETING At 12:35 a.m., Mayor reconvened the Special Meeting of the Mayor and Common Council/Commission of the City of San Bernardino in the Redevelopment Agency Board Room, Fourth Floor, City Hall, 300 North "0" Street, San Bernardino. ROLL CALL Roll call was taken with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Maudsley, Minor, Pope-Ludlam, Miller; City Attorney Penman, City Clerk Clark, City Administrator Julian, Senior Assistant City Attorney Barlow. Absent: None. 9 10/25/89 . APPOINTMENT - LARRY REED - PLANNING & BUILDING SAFETY DIRECTOR - CLOSED SESSION Mayor Holcomb announced that in closed session, the Council voted to appoint Mr. Larry Reed as the Planning and Building and Safety Director. APPOINTMENT - BOB TEMPLE - INTERIM DIRECTOR REDEVELOPMENT AGENCY - CLOSED SESSION Mayor Holcomb announced that in closed session the Council voted 5 to 2 to appoint Mr. Bob Temple to serve as Interim Executive Director of the Redevelopment Agency. RECESS MEETING At 12:35 a.m., Mayor Holcomb recessed the Special Meeting of the Mayor and Common Council/Commission of the City of San Bernardino to a luncheon meeting at the New City Cafe. RECONVENE MEETING At 12:45 a.m., Mayor Holcomb reconvened the Special Meeting of the Mayor and Common Council/Commission in the New City Cafe, Vanir Tower, City Hall Plaza, 290 North "D" Street, San Bernardino, California. . ROLL CALL Roll call was taken with the following being present: Mayor Holcomb; Council Members Reilly, Maudsley, Minor, Pope-Ludlam, Miller; City Attorney Penman, City Clerk Clark, City Administrator Julian. Absent: Council Members Estrada, Flores. Also present: Lorraine Velarde, Executive Assistant to the Mayor; Craig Graves, City Treasurer. RECESS MEETING At 1:45 p.m., Mayor Holcomb recessed the the Mayor and Common Council/Commission of Bernardino until 2:00 p.m., in the Management (MIC), Sixth Floor, City Hall 300 North Bernardino, California. Special Meeting of the City of San Information Center "D" Street, San RECONVENE MEETING At 2:15 p.m., Mayor Holcomb reconvened the Special Meeting of the Mayor and Common Council/Commission in the Management Information Center (MIC), Sixth Floor, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the following being present: Mayor Holcomb; Council Members Estrada, Reilly, Flores, Minor, Miller; City Attorney Penman, City Clerk Clark, City Administrator Julian. Absent: Council Members Maudsley, Pope-Ludlam. . 10 10/25/89 . . . VACANT POSITIONS - POLICE DEPARTMENT Mayor Holcomb stated that within the next six to eight weeks a revenue enhancement program will be adopted and vacant police officer positions can be filled. Mayor Holcomb recommended lifting the freeze on the five positions in the Police Department and authorizing the department to fill them. Council Member Minor made a motion, seconded by Council Member Flores and unanimously carried, to fill the vacancies of sworn officer positions in ,the Police Department. MAYOR HOLCOMB AND COUNCIL MEMBER ESTRADA EXCUSED At 2:20 p.m., Mayor Holcomb and Council Member Estrada left the Council meeting. COSPONSORSHIP OF MAGIC MAIN STREET FESTIVAL CITY HALL PLAZA - OCTOBER 27-28, 1989 In a memorandum dated October 5, 1989, Jim Richardson, Deputy City Administrator, Development Services, stated that the City has been asked to cosponsor the Magic Main Street Festival and provide the following services on an in-kind basis: ten trash containers to be delivered by 9:00 a.m., site clean-up and removal of trash container at 3: 00 p.m.; three police officers for security purposes during the festival. The first of the two events scheduled include a masquerade ball at the Convention Center of the Maruko Hotel on Friday evening, October 27th. The second event is scheduled for Saturday, October 28, which is a family festival which will provide entertainment, food and beverage vendors free of charge. (7) A discussion ensued opposed to the use of Festival. regarding the use of police officers as security for the Magic Main Street City Attorney Penman answered questions regarding co- sponsorship events. Council Member Minor made a motion, seconded by Council Member Flores, to remove the word "police officers" from the staff report and replace it with security or reserves. The motion failed by the Members Reilly, Flores, Minor. Absent: Council Members Estrada, following vote: Ayes: Noes: Council Member Maudsley, Pope-Ludlam. Council Miller. Council Member Reilly made a motion, seconded by Council Member Miller and unanimously carried, that the Magic Main Street Festival, to be held October 27 and 28, 1989, at the City Hall Plaza, be cosponsored by the City of San Bernardino, that city departments be authorized to provide in-kind services, and that all fees be waived; and that the City provide security services. 11 10/25/89 . ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SUBSECTION 5.04. 525F REQUIRING A BUSINESS LICENSE FOR LEASING OR RENTING RESIDENTIAL PROPERTY AND REPEALING SECTION 5.04.355 REGARDING ASTROLOGY, PALMISTRY AND PHRENOLOGY. (5) ORDINANCE OF THE CITY OF SAN BERNARDINO MUNICIPAL CODE RELATING TO THE WAIVER OF FEES FOR CHARITABLE ORGANIZATIONS. (6) Said ordinances were continued to Monday, November 6, 1989, at 8:30 a.m., in the Council Chambers of City Hall, 300 North "0: Street, San Bernardino, California. ALLOCATION OF REVENUES FROM BOND REFINANCING PROGRAMS AND PROPOSED EXPENDITURES FOR VARIOUS PROJECTS, RESERVES EQUIPMENT AND PERSONNEL - DISCUSSED EARLIER IN MEETING A report dated October 17, 1989 prepared by Jim Richardson, Deputy City Administrator, Development Services, outlined the various revenue enhancement programs proposed for various departments to generate additional incoming revenue. (4) (See page 3) . City Attorney Penman referred to the memorandum dated October 18, 1989, by City Administrator Julian, where under Category III it shows $412,055 in the general fund. This is a one time situation that these funds will be available. The most recent audit shows the litigation reserve fund is under $10 million. He encouraged the Council to consider putting half of the $412,055 into the liability reserve. Craig Graves, City Treasurer, stated that there are limitations on the use of the $20 million from potential bonds to be issued in Category II. Ci ty Attorney Penman answered questions transferring certain funds. regarding Council Member Minor made a motion, seconded by Council Member Reilly and unanimously carried, to allocate the $1,000,000 from Category I for the Project Area(s) Blight Reduction Program. Council Member Minor made a motion, seconded by Council Member Reilly and unanimously carried, to allocate $1,000,000 from Category II for the Upgrade and Beautification Program for RDA and adjacent areas. . Council Member Minor made a motion, seconded by Council Member Reilly and unanimously carried, to continue the remainder of the allocation of revenues from bond refinancing and the revenue enhancement proposals to Monday, November 6, 1989, in the Council Chambers of City Hall, 300 North "0" Street, San Bernardino, California. 12 10/25/89 . . . COUNCIL MEMBER ESTRADA RETURNED At 2:55 p.m., Council Member Estrada arrived at the Special Meeting. ADJOURNMENT At 3:00 p.m., Council Member Minor made a motion, seconded by Council Member Flores and unanimously carried, that the meeting be adjourned. SHAUNA CLARK City Clerk By JrmdM) lrkdinaJ Deputy City Clerk No. of Items: 11 No. of Hours: 5 13 10/25/89